New Delhi, June 3 -- Kotak Alternate Asset Managers Ltd has hit the final close of its 14th real estate fund at $1 billion (around Rs 9,500 crore), backed by an anchor commitment from the Abu Dhabi Investment Authority (ADIA) and an investment from the National Pension Service of Korea (NPS Korea).
This marks NPS Korea's first investment in India's alternatives market, the alternatives arm of the Kotak Group said in a statement.
Kotak Alts said NPS Korea's participation is particularly significant as it represents the pension fund's first investment in Indian alternative assets. As a global investor with exposure to private equity, real estate, and infrastructure across major markets, NPS Korea's decision to enter India through Kotak Alts' real estate platform reflects both the growing maturity of India's alternatives market and Kotak Alts' standing among institutional investors, it added.
ADIA has committed $675 million as the anchor investor in the fund, marking its sixth consecutive commitment to Kotak Alts' real estate platform.
According to the firm, the relationship between Kotak Alts and ADIA now spans more than a decade and multiple fund vintages, making it one of the longest-standing partnerships in India's institutional real estate market.
The 14th fund will provide growth and development financing across residential, commercial and other real estate asset classes in key Indian cities. The target is to generate risk-adjusted returns for institutional investors through disciplined underwriting, strong security structures, and an investment process refined over 13 previous fund vintages spanning more than two decades.
"The 14th fund is built on the learnings of 13 prior vintages across multiple real estate cycles, regulatory transitions, and liquidity environments. That depth of institutional memory is what gives global investors like ADIA and NPS Korea the confidence to commit," said Vikas Chimakurthy, chief executive officer of Kotak Alts (Real Estate Fund).
The latest development comes shortly after VCCircle reported that the firm had hit the final close of its latest real estate fund, backed by ADIA and a Korean institutional investor.
"This fund closure is a milestone that reflects the strength of the relationship we have built with the world's most discerning institutional investors," said Srini Sriniwasan, managing director at Kotak Alts. "NPS Korea's maiden Indian alternatives commitment to our platform for an India-dedicated strategy in these volatile times is an equally powerful validation."
Mohamed Al Qubaisi, executive director, real estate department at ADIA, said India's real estate sector continues to see strong demand for capital, while Kotak has delivered consistent returns and displayed underwriting discipline across market cycles. "This anchor commitment is testament to the strong relationship we have built over more than a decade," he added.
Kotak Alts focuses on alternative asset management and investment advisory businesses. Founded in 2005, it has raised, managed and advised over $22 billion across private equity, real estate, infrastructure, special situations, private credit, and investment advisory strategies.
Published by HT Digital Content Services with permission from VC Circle.